0

Our HOA is in a contract with an evergreen clause or automatic renewal clause. Part of the agreement states that the contract cancelation notice must be given at least 90 days before the contract would automatically renew. That's fine. However it also states that it must be less than 120 days. Is this maximum renewal cancelation time constraint legal?

The contract renews for 3 years at a time.

I see no legitimate business reason for this type of clause other than to prey on the forgetfulness of the HOA.

Improve this question

1 Answer 1

Reset to default
1

Yes, that's generally legal

The "legitimate business reason" is that it allows cancellations to be prepared for within a reasonable time of when they are actually going to happen. If they allowed cancellation the day after the renewal, then there is a not unreasonable chance that three years later, one or the other or both parties may have forgotten that this happened.

Improve this answer
1
  • Your answer cites nothing. Most states have laws about cancelling similar agreements.
    – Mimedfp
    Commented May 4 at 15:59

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .